The straddle strategy is a popular trading technique used by many traders to profit from the volatile movements of stocks, forex, and other financial assets. It involves buying both a call option and a put option with the same strike price and expiration date, which allows traders to profit from both upward and downward price movements. In this article, we will explain how the straddle strategy works and how you can use it to make $100 daily.
How the Straddle Strategy Works
The straddle strategy involves buying a call option and a put option with the same strike price and expiration date. This allows traders to profit from both upward and downward price movements. For example, if a stock is currently trading at $50 and you buy a call option with a strike price of $50 and a put option with a strike price of $50, you will profit if the stock moves above $50 or below $50.
If the stock moves above $50, the call option will be in the money and the put option will expire worthless. If the stock moves below $50, the put option will be in the money and the call option will expire worthless. In either case, you will profit from the difference between the strike price and the current price of the stock.
How to Use the Straddle Strategy to Make $100 Daily
To use the straddle strategy to make $100 daily, you will need to follow these steps:
Step 1: Choose a Volatile Asset
The first step in using the straddle strategy is to choose a volatile asset. Stocks that are known to have large price swings are good candidates for the straddle strategy. Some popular choices include Apple, Amazon, and Tesla. You can also use the straddle strategy on forex pairs, such as EUR/USD and USD/JPY.
Step 2: Determine the Strike Price and Expiration Date
Once you have chosen an asset, you will need to determine the strike price and expiration date for your options. The strike price should be set at the current price of the asset, and the expiration date should be set to the end of the trading day.
Step 3: Buy the Call and Put Options
Next, you will need to buy both the call and put options. You can use a trading…
